Budget deal coming?

posted at 3:35 pm on March 23, 2011 by Ed Morrissey

Have Republicans and Democrats used the newly-found bipartisanship forged in anger over Barack Obama’s arrogant treatment of Congress on Libya to reach a deal on the FY2011 budget?  Reuters hears whispers around the campfire that both sides may move towards a compromise that will finally end the six-month-plus wait for a federal spending plan for the current fiscal year:

Republicans and President Barack Obama’s Democrats, facing huge economic stakes, may soon reach a budget deal for this fiscal year after weeks of half measures to avert a government shutdown.

Worried about the fragile U.S. recovery and their own political well-being, members on both sides seem willing to resolve a gap between them on how much needs to be cut from federal spending this fiscal year to rein in the budget deficit.

“Chances of a deal seem reasonably good,” a senior congressional aide said, adding that talks may deepen when they move from staff level to the involvement of party leadership in the Senate and House of Representatives as early as next week.

A GOP aide says that a deal is in “everyone’s interest,” referring to the political danger in a government shutdown.  That danger exists more for Democrats rather than Republicans.  After all, Democrats had all of 2010 to pass the FY2011 budget, including the lame-duck session’s omnibus.  They larded it down with so much pork that they couldn’t even count on their own caucus to support it.

However, Republicans have their own reasons to get this finished quickly as well:

The aide said at least some House Republicans may back off demands for deeper cuts this year after House Budget Committee Chairman Paul Ryan unveils plans next week for additional reductions in fiscal 2012.

Republicans have already cut $10 billion in five weeks, more than Democrats were willing to go for the rest of the whole year last month.  If they can get more cuts in a final package, they can declare victory and move forward with the next budget cycle.  Otherwise, a series of CRs will tie up progress on the next budget.

And that’s where the real money will be.  Even the $100 billion in discretionary spending cuts demanded by conservatives from the FY2011 are mostly a token of commitment, not a real solution to government overspending.  In order to eliminate a $1.6 trillion deficit, Congress has to restructure entitlement spending, which Ryan has pledged to pursue.  That will mean statutory changes apart from the budget process, and it will force Democrats to either come to the table or watch Republicans blame them for obstructionism in addressing the serious fiscal crisis facing the US.

The quicker we get to that debate, the better.


Related Posts:

Breaking on Hot Air

Blowback

Note from Hot Air management: This section is for comments from Hot Air's community of registered readers. Please don't assume that Hot Air management agrees with or otherwise endorses any particular comment just because we let it stand. A reminder: Anyone who fails to comply with our terms of use may lose their posting privilege.

Trackbacks/Pings

Trackback URL

Comments

Obamacare, Planned Parenthood and NPR will no doubt be funded.

Wethal on March 23, 2011 at 3:39 PM

There’ll be deal after deal after deal as Republicans cave, cave, cave.

BowHuntingTexas on March 23, 2011 at 3:41 PM

Not to steal anyone’s thunder about a GOP betrayal, but I have a feeling we will soon be doing the Boogie Woogie with a knife in the back.

And then they will raise the debt ceiling.

sharrukin on March 23, 2011 at 3:44 PM

Even the $100 billion in discretionary spending cuts demanded by conservatives from the FY2011 are mostly a token of commitment, not a real solution to government overspending.

Yeah, who cares about the $100 billion they promised us before?

That was just a “token commitment.” I’m sure they’ll totally deliver on bigger cuts though!

Look, I don’t know why we cheerlead for the guys. If you think the Senate or Obama will sign off on Ryan’s budget, I don’t know what to tell you. If we do anything with entitlements or cut more than $100 billion before FY 2013, I will eat my hat.

Trent1289 on March 23, 2011 at 3:44 PM

If they can get more cuts in a final package, they can declare victory and move forward with the next budget cycle.

agree, let’s hit them where they hurt in budget 2012…

After all, Democrats had all of 2010 to pass the FY2011 budget, including the lame-duck session’s omnibus.

the gop must reiterate this loud and clear when they pass budget 2011

cmsinaz on March 23, 2011 at 3:45 PM

Don’t make me go “Egypt” on your DC bunns !!!

JayTee on March 23, 2011 at 3:45 PM

And then they will raise the debt ceiling.

sharrukin on March 23, 2011 at 3:44 PM

this should not happen…need to hold the gop feet to the fire on this one….

cmsinaz on March 23, 2011 at 3:46 PM

How many times…Yet you all mock me…Until they do it…Again, and again, and again…

The GOP will betray you

True_King on March 23, 2011 at 3:48 PM

Oooooh, it just makes my leg all tingly to hear Senators say they’re willing to compromise over how much more damage they can do to what’s left of our economy.

I think the result will be a bunch of meaningless “cuts” that ignore reality — when there is no money, you can’t spend any, as any first-grader with an allowance knows –but give the royalty in D.C. their expected rations of pork. In return, they’ll say, “hey we didn’t drive the country as much farther into debt as we could have!”

It’ll get ‘em all lots o’ face-time on the talking-head shows and much debate among the bloggy “pundits.” While the nation slides down the financial tubes, of course.

MrScribbler on March 23, 2011 at 3:48 PM

Obamacare, Planned Parenthood and NPR will no doubt be funded.

Wethal on March 23, 2011 at 3:39 PM

Given the level of testosterone exhibited by the House “Leadership” so far, I have no doubt that you will be proven correct..

Gohawgs on March 23, 2011 at 3:49 PM

Stand by for a full anal exam. When I hear “deal” I know I’m about to get screwed – AGAIN

jake-the-goose on March 23, 2011 at 3:49 PM

Obamacare, Planned Parenthood and NPR will no doubt be funded.

Bingo.

The GOP are absolutely spineless and are now conspiring with the Democrats to lock in the last 2 years of gains by the liberal ideologues Reid and Pelosi.

Same old same old.

Bohner, as we all suspected, is an GOP establishment hack.

rickyricardo on March 23, 2011 at 3:50 PM

OT: Sen. Claire McCaskill’s bill for back taxes owed to Missouri is expected to top $320,000, including $80,000 in interest alone.

Link

teke184 on March 23, 2011 at 3:50 PM

this should not happen…need to hold the gop feet to the fire on this one….

cmsinaz on March 23, 2011 at 3:46 PM

How?

I mean seriously how do we do that when they will play the lesser of two evils game and shake the scary Obama doll at us all, and ask in a breathless voice.. ‘do you want this to happen again‘?

I think the GOP is a total waste of time.

sharrukin on March 23, 2011 at 3:52 PM

How many times…Yet you all mock me…Until they do it…Again, and again, and again…

The GOP will betray you

True_King on March 23, 2011 at 3:48 PM

Mock you?
Most of us are starting to agree with you!

sharrukin on March 23, 2011 at 3:55 PM

sharrukin on March 23, 2011 at 3:52 PM

if ryan has the cuts in place for ’12, there would be no need to raise it…or am i missing something?

cmsinaz on March 23, 2011 at 3:56 PM

The aides aide will talk to some more aides, then if it is a nice conversation, he may take it the the Senior aides aide for some more negotiating.. Finally the Senior aide will talk with the actual lawmaker (who is responsible for making the laws and holding the pursestrings). The lawmaker will discuss it with his Royal Aides aide. There will be questions asked to the aides aid, who will take them to the senior aides aid, and back to the lawmaker (who is responsible for making the laws and holding the pursestrings). I love how this system works!! It is so aide friendly! And each aide has an office and a computer and lights, and a parking place and a pension and healthcare, and a bonus. Paid for by me.

kringeesmom on March 23, 2011 at 3:57 PM

they can declare victory

For what; capitulation is victory now?

Don’t expect any more effort in their next budget, either, because the factors will be identical, and having folded on this battle without a fight the Democrats already have their number.

FloatingRock on March 23, 2011 at 3:58 PM

“There’ll be a deal. It’s in everyone’s best interest.”

Whenever you hear politicians say this, you should run far away as fast as you can.

Good Lt on March 23, 2011 at 3:58 PM

If we want all those things defunded we’re going to have to take back the Senate and the presidency

cpaulus on March 23, 2011 at 3:58 PM

“There’ll be a deal. It’s in everyone’s best interest.”

I get hives when I hear about things out of DC that are in everyone’s best interest. Usually that means they are in the best interest of everybody in DC, and the rest of us get screwed.

Haiku Guy on March 23, 2011 at 3:58 PM

the Rs need an issue…and the issue is Harry and Claire are out of touch..they have no idea what the US needs to look like in the future…they think the gravy train is endless. Let’s move on with the Adults in 12.

Those who dream of a Michael Moore’s America can not win the day.

r keller on March 23, 2011 at 3:59 PM

The GOP will betray you

True_King on March 23, 2011 at 3:48 PM

Please keep on telling us, it becomes more true with each and every day!

kringeesmom on March 23, 2011 at 3:59 PM

What’s it going to take…

… an armed revolt to get them to believe we are serious about cutting and stopping the out of control spending?

Seven Percent Solution on March 23, 2011 at 4:01 PM

if ryan has the cuts in place for ’12, there would be no need to raise it…or am i missing something?

cmsinaz on March 23, 2011 at 3:56 PM

Thats a big if.

The GOP has dragged their feet in every case where they could have acted. Guys like Walker are the glaring exception to what we have come to expect from the GOP.

How many from the GOP have even endorsed Ryan’s plan?

sharrukin on March 23, 2011 at 4:01 PM

They promised $100 billion. They control the purse strings. They have no excuse.

FloatingRock on March 23, 2011 at 4:01 PM

“There’ll be a deal cave by the GOP. It’s in everyone’s best interest.”

davek70 on March 23, 2011 at 4:04 PM

A year ago, Greek protestors fire bombed a bank and killed a teller. The response in this country was we are bad, but we are not Greece. I disagreed then (our debt makes us too big to fail – but too big to bail out), and I disagree now.

Madison, and its aftermath (voters intent- negated by judicial fiat), proves that we are Greece. Public employee unions will not allow for any change in the status quo. (PEU money funneled to Democrats, funneled back to PEUs.)

Now our Republican leadership is going to sell us down the river once again.

We are Greece.

Angry Dumbo on March 23, 2011 at 4:07 PM

How many times…Yet you all mock me…Until they do it…Again, and again, and again…

The GOP will betray you

True_King on March 23, 2011 at 3:48 PM

Seriously, you might have to start suing other commenters here for copyright infringement.

fiatboomer on March 23, 2011 at 4:15 PM

sharrukin on March 23, 2011 at 4:01 PM

can’t argue with that…good point…

cmsinaz on March 23, 2011 at 4:20 PM

I just love the term “budget deal”. Just who is it a “deal” for, though? I feel about these guys negotiating a deal between themselves the way I do when politicians “negotiate” with unions. The only thing worse, for us, is when politicians come to agreement with one another. That’s when it really gets expensive.

ncjetsfan on March 23, 2011 at 4:21 PM

The GOP “leadership” will surrender. Bank on it.

OhioCoastie on March 23, 2011 at 4:22 PM

Republicans have already cut $10 billion in five weeks, more than Democrats were willing to go for the rest of the whole year last month.

And last I checked, grannies and little children haven’t been dropping dead in the streets.

Keep cutting, GOPers! Stand by your guns!

UltimateBob on March 23, 2011 at 4:25 PM

They daammn-well better be DEFUNDING O-Care or they will be OUT in 2012.

stenwin77 on March 23, 2011 at 4:26 PM

So that’s why Barry is “rushing” back to Washington.

And here the talking heads think its all about Libya.

GarandFan on March 23, 2011 at 4:28 PM

The GOP will betray you

True_King on March 23, 2011 at 3:48 PM

Mock you ?? Shit, I always believed you.

“There’ll be a deal. It’s in everyone’s best interest.”

Whadda expect ?? They are all in cahoots with each other.

Jerome Horwitz on March 23, 2011 at 4:30 PM

Yeah, who cares about the $100 billion they promised us before?
That was just a “token commitment.” I’m sure they’ll totally deliver on bigger cuts though!

Cutting discretionary spending THIS year is just one battle. Forcing entitlement reform would be / will be the great victory of the “war”, though. I have faith in Ryan. He’s one of the few with guts enough to do it. Entitlement reform is the real prize.

Vyce on March 23, 2011 at 4:31 PM

If we want all those things defunded we’re going to have to take back the Senate and the presidency

cpaulus on March 23, 2011 at 3:58 PM

This.

Too many of you are too quick to mindlessly jump on the bandwagon of believing that if only the GOP “stuck to their guns”, they’d get everything they and/or we want.

The reality is, we only control the House. Dems have the Senate and White House. Until that changes, we’re not going to get anything without some degree of “compromise”, like it or not.

Also, I’m not sure I agree with Ed that the Dems would have more to lose politically from a prolonged shutdown, even if they should.

Hollowpoint on March 23, 2011 at 4:32 PM

Until that changes, we’re not going to get anything without some degree of “compromise”, like it or not.

Hollowpoint on March 23, 2011 at 4:32 PM

WE DON’T WANT ANYTHING!

We are not in it for the goodies. We want less of things. A lot less.

That is something the GOP can do and hasn’t.

sharrukin on March 23, 2011 at 4:40 PM

… in everyone’s interest expect us poor taxpayers suckers paying the bill.

I’d be disappointed but I gave up on the GOP some time ago.

Over50 on March 23, 2011 at 4:41 PM

It’s FY 2011 that has the $105 billion authorization to begin funding Obamacare….that’s the killer!

Boehner, Cantor, Ryan, McCarthy and McConnell in the Senate, are stuck on the old Beltway, going ’round and ’round and to hell with the constituents. They have to get re-elected, rather than do what they were told on Nov.2nd.

Very disappointing!

tomshup on March 23, 2011 at 4:53 PM

sharrukin on March 23, 2011 at 4:40 PM

Exactly. When your goal is to cut spending and you control the House, (which controls spending)—and you won a great victory promising to cut $100 billion—then you cut $100 billion like you promised. Snatching it away and say, “NO! Wait, you don’t get anything yet you have to vote for to give our corrupt politicians even more power, then maybe we’ll do what we promised.”, I say no sale.

FloatingRock on March 23, 2011 at 4:55 PM

Let’s try my last sentence again:
Snatching your promise away and saying, “No, you can’t have what we promised yet, not unless you vote for even more of our corrupt politicians—then maybe we’ll talk about defunding O-care and cutting $100 billion”—to that I say no sale.

FloatingRock on March 23, 2011 at 4:57 PM

This doesn’t even rise to cutting back on the Playboy channel on your cable bill while you can’t make your mortgage payment.

I guess this sort of ‘deal’ is what you’d expect from the Losership of both parties who have built their power based upon spending money, rather that pragmatic frugality in budgeting…

drfredc on March 23, 2011 at 4:57 PM

Exactly. When your goal is to cut spending and you control the House, (which controls spending)—

FloatingRock on March 23, 2011 at 4:55 PM

Oh but they are so helpless before that big brute Obama! /

The truth is that they are looking for a larger cut of the loot and if they get it they will ‘reach a deal’.

sharrukin on March 23, 2011 at 4:59 PM

And that’s where the real money will be.

LOL – no it isn’t.

The “real money” is going to be found in a comprehensive overhaul to the entire budget – not just entitlements – and not just discretionary but the ENTIRE budget. Discretionary reform has it’s place Ed – and that is – this is where the more ridiculous government spending can be found. Eliminate it!

All those who call for an immediate “Do not pass ‘go’ head right to entitlements debate” are going to cause some political turmoil that you’re not calculating in here …

Let’s play this out Ed. Am I willing to help reform entitlements by putting off my retirement for five years?

Sure – you betcha but …

I think I’m perfectly within my rights to complain to high heavens about that while the government is STILL WASTING money on NPR, the NEA, and Planned Parenthood. Why are these idotic expenditures of my money SPARED while a fairly “contractural” one such as Social Security gets cut? Democrats won’t cut those programs because they are pet programs. Republicans, like you, won’t cut them because you say they “merely drops in the bucket”.

Yet – every single dollar we cut from discretionary means one dollar we don’t have to cut from Social Security or Medicare. At the very least – cutting these “small expenditures” at least broadens our options a bit for true entitlement reform.

Riddle me this … let’s treat this as your household finances – and you’re in the red …

You need to cut some stuff out of your budget – what do you do?

Go straight to buying Hamburger Helper every night to feed the family in order to cut expenses while your daughter is still “texting” her little heart out because it doesn’t cost that much? Do you sell one of your cars while your son is still paying a monthly subscription fee to play AstroEmpires? Hey – it’s not much – but if you aren’t going to ace the stupid stuff first – you’re not prioritizing very well in your efforts there Ed.

HondaV65 on March 23, 2011 at 5:06 PM

New idea…close and defund any agency with three letters in its acronym.

Q: What do you call all 3-letter government agencies at the bottom of the Potomac?

A: A good start.

:)

Geministorm on March 23, 2011 at 5:08 PM

Paul Ryan’s initial 2012 budget has to be LESS than 3 trillion!

If Ryan is higher than that, he is doomed to failure along with the rest of the ‘establishment republicans’.

Freddy on March 23, 2011 at 5:08 PM

A GOP aide says that a deal is in “everyone’s interest,” referring to the political danger in a government shutdown.

The same failed rationale the GOP wimps used for the financial institution bailouts. Don’t these idiots ever learn?

infidel4life on March 23, 2011 at 5:11 PM

GOP cannot enact entitlement reform they don’t have the Senate and can’t override a veto.

And – we need to educate the public a bit more on the urgent need for entitlement reform. If we go forward on entitlement form – that means dusting off Mitch McConnell and John Boehner to make the arguments – and they are pathetic.

They don’t have a plan for entitlements. Paul Ryan does – it’s imperfect but it’s a plan. How many in Republican leadership have endorsed it?

ZERO – and it’s been out there awhile. Sarah Palin is the only other Republican I know of who’s endorsed it – maybe some other players like Michelle Bachman have – but she’s hardly leadership.

So yeah – let’s spend our time of full court press to reform entitlements at a time when we don’t have the votes to do it and don’t have an educated population to accept it.

And let’s do it with Mitch and John leading the charge!

???

If that doesn’t sound like a ship to nowhere – I don’t know what is. And what does this do for our fortunes in 2012? Not much – it likely will kill our chances of retaking the Oval Office.

But we can DAMN SURE win points until 2012 by pounding the Dims on Planned Parenthood and the NEA and NPR and the other stuff. And – in the process – we can get rid of some that because those are battles we can win with the public.

Well maybe not – I have to always come back to the thought that – no matter what we do in the next two years we’re still bogged down by lousy leadership in the House and Senate.

HondaV65 on March 23, 2011 at 5:16 PM

Republicans have already cut $10 billion in five weeks, more than Democrats were willing to go for the rest of the whole year last month. If they can get more cuts in a final package, they can declare victory and move forward with the next budget cycle.

ForgetAboutIt! Either the budget cuts AT LEAST another 90 BILLION, PLUS shows enough cuts to pay for 0bama’s WAR, or it is a bust.

Maybe the democrats will offer to steal ANOTHER 12 BILLION from the Food Stamps Program.

Change You Can believe In. :)

DannoJyd on March 23, 2011 at 5:26 PM

Can they at least de-fund the EPA get rid of non-statutory “rules” on greenhouse gases?

Steve Z on March 23, 2011 at 5:37 PM

Even the $100 billion in discretionary spending cuts demanded by conservatives from the FY2011 are mostly a token of commitment…

…and will result in a token commitment in the primaries! Primaries are our chance to replace RINOs with responsible conservatives. This should be our main objective over the next decade… purge the RINOs from leadership!

dominigan on March 23, 2011 at 5:42 PM

This should be our main objective over the next decade… purge the RINOs from leadership!

dominigan on March 23, 2011 at 5:42 PM

This will all be settled long before the decade is over. Wouldn’t it be nice if we could chose our time and place to fix these problems by making a stand? The time for that was in the past. Since we failed to do so in a responsibly timely manner, (thanks to the progressive elites that control both sides of the isle), now our options are limited. If Obamacare is still around in 10 years and the debt is 30 trillion dollars who cares how many RINO’s are still left in Congress?

FloatingRock on March 23, 2011 at 6:09 PM

The GOP has given a lip service response to the Tea Party. But GOP has assessed that most TP folk realize a 3rd party won’t work, and gamble the TP people won’t break with the GOP in the current crisis. They are most likely correct.

We have no place to go. So GOP continues pursuing moderates in preference to conservatives, still, despite everything.

I’m in McCarthy’s district, and he has quite the machine. Still, running a Tea Party opponent to him might get his attention. I wish I could see something more effective to do.

jodetoad on March 23, 2011 at 6:13 PM

Is John Boehner a practicing Proctologist, cos it’s starting to feel like it ?

Sandybourne on March 23, 2011 at 6:27 PM

AH, HAHAHAHAHA!
Hows that Reform the GOP from Within BS working out for ya?

Primary Boehner-boy and Cantor. And if that fails, third party them. There will be no fixing any of our structural problems unless those “leaders” are removed.

james23 on March 23, 2011 at 6:49 PM

Oh, c’mon Ed! Surely you can’t be serious. The GOP needs to tackle this now. You really think the democrats will deal next year!?!? The demogaguery will be deep and wide.

SouthernGent on March 23, 2011 at 7:51 PM

If they can get more cuts in a final package, they can declare victory and move forward with the next budget cycle.


The only victory that will come out of this deal will be for the Democrats. The GOP will loose support because they have failed AGAIN to live up to their promises.

Meanwhile, those of us with real budgets will continue to cut where and when necessary. I suggest you write your critters in Washington and tell them the first thing you will cut is their jobs. The will of the people will be maintained via the box – we’re still at stage two (ballot) but that can change.

jackal40 on March 23, 2011 at 10:48 PM

The quicker we get to that debate, the better.

Why can’t we have that debate now (with the current budget)?

What magic wand will the GOP wave over the new budget that will make it acceptable to the Dems? Why not use that wand on the current budget (with GOP cuts)?

mockmook on March 24, 2011 at 12:18 AM

BTW, I support what (I think) Boehner is doing.

I don’t think waiting until the new budget for the fight is the end of the world.

But, if Boehner is ready, we can have this fight now.

mockmook on March 24, 2011 at 12:24 AM